Good morning, it's Paul & Jack here with Thursday's report. Today's report is now finished.

Agenda -

Paul's Section:

Revolution Bars (LON:RBG) (I hold) - festive season was hit by pandemic issues, as we've heard from other bars. It's still in line with full year expectations though (set low). I see a very positive second half (Jan-June 2022) being likely, and explain why.

Gear4music Holdings (LON:G4M) (I hold) - peak trading Q3 (Oct-Dec 2021) has gone OK in the UK, but sales are well down in Europe- Brexit challenges being blamed. We're told to expect a recovery in EU sales, due to 2 new distribution centres ramping up. Overall, G4M reassures, with EBITDA guidance in line with market expectations. Some good catalysts for growth - e.g. acquisition of AV.com. Share price looks about right to me.

Superdry (LON:SDRY) - I have a good rummage through interim results, and for the first time see signs of a potential turnaround. Management seem to have stabilised the business around annualised breakeven. Solvency looks OK. Might be worth a punt, if you think management can recover former glories, but that won't be easy with big cost headwinds coming in 2022.

Jack's Section:

Wincanton (LON:WIN) - FY profit to be ahead of expectations. Good control over costs and new contract wins, so the group is executing well. Financial risks remain though, which is a shame, as the valuation here is modest and the shares could well rerate at some point. So we have to consider the potential risks against the likely reward.

Wickes (LON:WIX) - Q4 sales down -5% on tough comps, but up 14% on a 2Y basis. It’s the cheap valuation that has attracted me to this recent demerger, which used to be a part of Travis Perkins. There’s a lot of competition, so the group needs to prove it can defend and grow market share.

Time Finance (LON:TIME) - modest levels of growth here but the shares offer good value, so not much is currently expected from the market. The new CEO has been in place since June 2021 and the strategy has shifted from buy and build to organic growth. It’s a micro cap now, but one in which the investment case is beginning to look more favourable.


Market…

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